Ariana Resources has announced the production and sale of 3,762 oz gold and 15,985 oz silver for the Kiziltepe mine during the quarter to the end of September which exceeded feasibility forecast by c.6% for recovered gold on an annualised basis.
- Operating cash costs for the quarter are estimated at US$570 per ounce
- Total gold and silver sales since start-up are 5,691 oz and 30,504 oz respectively
- Gross income for the quarter is US$5.05 million and average realised gold equivalent price is US$1,342 per ounce.
- Processing plant fully-tested beyond design specifications; operational mill availability increased to 97% and utilisation increased to c.98% during September.
Kiziltepe is part of the Red Rabbit joint venture with Proccea Construction Co and is 50% owned by Ariana through its shareholding in Zenit.
Managing director Dr. Kerim Sener said: 'This is an excellent result from our first quarter of commercial production.
'We have successfully increased our peak production rate from the open pit at Arzu South to over 22,000 tonnes of ore per month during the quarter.
'The process plant, in particular the mill, has also been tested successfully at its highest rates and work is progressing on achieving higher sustainable rates.
'To date this work has demonstrated that the operation has the capacity to achieve throughput rates substantially higher than feasibility parameters.
'Most encouraging of all, we have demonstrated that the operating cash cost of production is well within the range of feasibility expectations.
'The operating success and process refinements undertaken by mine management demonstrate the capability and professionalism of our operations team and joint venture partners.
'I would like to take this opportunity to thank and congratulate both teams on their outstanding performance.'
At 9:30am: (LON:AAU) Ariana Resources PLC share price was +0.06p at 1.43p